Actual site to be built, image is of nearby location under same operator Offering Memorandum THE HUMAN BEAN 2110 CALDWELL BLVD NAMPA, ID 83651 Absolute NNN Drive-Thru Asset with Long Term Lease DAVID CADWELL 208 850 3733 david.cadwell@colliers.com MIKE CHRISTENSEN 208 472 2866 mike.christensen@colliers.com This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). 2015. All rights reserved
PROPERTY OVERVIEW Executive Summary The Human Bean is an absolute net drive-thru asset located on a primary arterial off the Karcher Interchange in the regional area of Nampa, Idaho. This prominent location is surrounded by numerous big-box and anchor tenants. The Human Bean is a well known and successful drive-thru-only coffee brand, and this location is a brand new building with a 12 year NNN lease. The operator has used their extensive experience in the coffee business to successfully improve the brand and sales in the Treasure Valley. Profile Address 2110 Caldwell Blvd Nampa, Idaho Year Built 2017 Size 500 SF Leaseable square footage Land Size 29,146 SF Retail Anchor Winco Foods Lease Type Absolute NNN Lease Term Initial 12 years Commencing May 2017 Parking 12 Spaces Price $1,070,000 Cap Rate 6% Highlights»» 8 th location for successful local operator of a well-known national brand»» Zero Landlord responsibility Visual representation actual site to be built»» Located in a significant retail corridor in one of the most rapidly growing cities in Idaho»» Traffic counts of ±40,118 VPD on Caldwell Blvd, and ±42,461 VPD on Karcher Road, the nearest large intersection COLLIERS INTERNATIONAL P. 2
FINANCIALS SUMMARY LEASE DETAILS Price: $1,070,000 Lease Type: Absolute NNN Capitalization Rate: 6% Scheduled Rent: 8/1/17 $64,200 Operating Expenses: $0 (NNN) Net Operating Income: $64,200 Lease Start: 5/1/2017 Lease Expiration: +12 years (4/30/2029) Options: Guarantees: Two (2) five (5) year options; 120 days notice Personally guaranteed RENT ROLL Tenant Size Term Years Monthly Rent % Increase Annual Rent Furioso Associates LLC, dba The Human Bean Boise 500 8/1/2017 1-6 $5,320 $64,200 Occupancy Date: 5/1/2017 8/1/2020 7-12 $5,992 10% $71,904 8/1/2025 TBD 8/1/2030 TBD Absolute Net Lease Tenant is responsible for all maintenance and repair to the Premises, including all common area expenses, property taxes, insurance and utilities. Landlord has no responsibilities. The Lease is personally guaranteed and has two, 5-year options to be exercised with 120 days prior notice and rent to be agreed upon at that time. COLLIERS INTERNATIONAL P. 3
PROPERTY LOCATION COLLIERS INTERNATIONAL P. 4
LOCATION NOW OPEN FOR BUSINESS CALDWELL BLVD ± 40,118 CPD ± 17,293 CPD MIDLAND BLVD ± 37,570 CPD COLLIERS INTERNATIONAL P. 5
FRANCHISEE ABOUT THE HUMAN BEAN The Human Bean opened their first drive-thru espresso stand in Ashland, Oregon in 1998. The demand for convenient, quality coffee & espresso grew and soon after opening the original location in Ashland, they expanded to surrounding cities in Southern Oregon. The Human Bean quickly established a reputation for having friendly and experienced baristas and offering the highest quality ingredients. THE FRANCHISEE The owner and franchisee operates 8 locations valley-wide and is a valued member of the Advisory Board for The Human Bean corporate. The Human Bean s brand and system began franchising in 2002. Since then they have expanded to 63 locations in nine states, 47 of those being franchised locations and 13 being corporate locations. Caldwell Eagle Subject Site Other location operated by franchisee Meridian Boise Nampa COLLIERS INTERNATIONAL P. 6
DEMOGRAPHICS 1 Mile 3 Miles 5 Miles POPULATION 2016 Estimated Population 6,472 47,321 123,766 2021 Projected Population 7,171 52,710 137,514 2010 Census Population 5,569 41,452 108,503 2000 Census Population 3,373 24,764 70,067 Historic Annual Growth 2000 to 2016 5.7% 5.7% 4.8% HOUSEHOLD 2016 Estimated Households 2,466 16,011 41,422 2021 Projected Households 2,637 17,220 44,487 2010 Census Households 2,131 14,129 36,542 2000 Census Households 1,321 8,823 24,485 INCOME 2016 Est. Average Household Income $56,343 $52,894 $50,535 2016 Est. Median Household Income $43,147 $42,770 $42,877 MISC. 2010 Median Home Value $113,263 $136,880 $138,521 2010 Median Rent $649 $661 $628 2016 Est. Population Age 16 and Over 4,886 34,358 90,627 2016 Est Average Age 35.2 31.8 31.0 2016 Est. Total Household Expenditure $117 M $725 M $1.82 B COLLIERS INTERNATIONAL P. 7
AREA OVERVIEW PORTLAND SEATTLE SPOKANE WASHINGTON MISSOULA MONTANA OREGON 400 MILES 200 MILES BOISE IDAHO WYOMING 600 MILES SAN RENO FRANCISCO NEVADA SALT LAKE UTAH LARAMIE The Boise Valley is strategically located in the Mountain Time Zone in Southwestern Idaho, providing easy non-stop access to all major cities on the West Coast, the Pacific Northwest and the Intermountain West. Of the West s major metropolitan areas, 12 are within 800 miles of the Boise Valley. CALIFORNIA LOS ANGELES LAS VEGAS The Boise Airport (BOI) is located less than five miles from downtown Boise and handles more than three million travelers each year. # 1Lowest Cost Metro in the Pacific U.S. www.competitivealternatives.com April 2016 Most Caring City in America www.wallethub.com December 2015 Best Cities to Live www.247wallst.com November 2015 Top 100 Best Place to Live 2015 www.livability.com September 2015 TOP 10 Best Place to Live in 2016 www.mensjournal.com March 2016 Best Air Quality www.realtor.com April 2016 Hottest Housing Markets of 2016 www.zillow.com January 2016 #2 in Up-And-Coming Cities for Recent College Grads www.forbes.com June 2015 COLLIERS INTERNATIONAL P. 8
AREA OVERVIEW Quality of Life Referred to as the Treasure Valley, the region is home to about 675,000 people. The workforce of roughly 330,000, live within a 45-minute draw area. Known for its extraordinary quality of life and affordable cost of living (currently one of the lowest in the western states, according to the ACCRA Cost of Living Index), the Treasure Valley is consistently ranked by Forbes, The Wall Street Journal, Livability and Inc. Magazine as one of the best places in the U.S. to live and work. Commuting in the Valley The major interstate serving the Treasure Valley is I-84, running through the metro area s major cities (Boise, Meridian, Nampa and Caldwell). Branching off to the northeast is I-184, which runs into downtown Boise. Daily commutes are easy, with several U.S. and state highways providing direct routes and minimal traffic. The average commute time is only 18 minutes. Public transportation is handled by ValleyRide, Treasure Valley Transit and ACHD Commuteride. What about logistics? There are 50 motor freight companies traveling 5 interstates, 20 U.S. highways and 30 state highways that serve the Boise Valley. More than 1,600 miles of rail line through Union Pacific and Burlington Northern Santa Fe provide connection points to Canada, Mexico and the U.S. They are aided by the state s regional line and 6 short line railroads. Annually, the rail system transports over 11 million tons of freight. COLLIERS INTERNATIONAL P. 9
AREA OVERVIEW Vibrant Communities Minutes from rivers, lakes and mountains, the Boise Valley is open 24/7 for any type of outdoor adventure. Recreation Located 17 minutes from downtown Boise, the Bogus Basin Ski Area offers day and lighted night skiing. The Boise River runs through downtown and is accessible through a greenbelt system with over 25 miles of bike paths and 850 acres of parks. With worldclass golf courses, hiking, fishing and mountain biking, the recreation opportunities are virtually unlimited within a 30-minute drive. Diversity While Idaho may not be known for diversity, more than 90 different languages are spoken in the Boise School District. The Boise Valley is home to one of the oldest synagogues in the western United States. Over 800 new citizens (refugees) are welcomed to the Boise Valley each year from over 20 foreign countries. The City of Boise has been recognized for its work helping these new citizens acclimate to their new country and helps other communities around the country with their programs. There are more than 24 language courses available through local universities and community education programs and an international baccalaureate program is available. Annual diversity events and resources include the Soul Food Extravaganza, PRIDE activities, Hispanic Cultural Center and the Black History Museum. The Mexican Consulate also has an office in Boise. COLLIERS INTERNATIONAL P. 10
AREA OVERVIEW IDAHO TAX OVERVIEW Sales and Use Tax in Idaho is 6%. This would apply to items purchased or consumed in Idaho. Exemptions are available for equipment and raw materials used directly in manufacturing, processing, or fabrication; clean rooms used in semiconductor and semiconductor equipment manufacturing; and any equipment or material used in research and development activities. We do not tax services including telecommunication services, and utilities such as water, gas, electricity, or natural gas. In our region we do not have any local option sales tax. Property Tax personal (machinery/equipment) and real (land/ buildings) based on market value. 2013 Rates: Ada County Average Range: 1.1% - 1.8% Canyon County Average Range: 1.5% - 2.5% Elmore County Average rate: 1.8% Idaho does not have an inventory tax. Corporate Income Tax Computed at 7.4% of the Idaho taxable income of a corporation. Corporations that are taxable in Idaho and another state or country or are part of a unitary group of corporations, use a 3 factor formula to ascertain how much of the business is conducted in Idaho. The apportionment formula is made up of a property factor, a payroll factor, and a sales factor. These three factors, with the sales factor being double weighted for all taxpayers except for electrical and telephone companies, are totaled and divided by 4 to compute the Idaho apportionment factor. The Idaho apportionment factor is then applied to the business income of the corporation to compute income assigned to Idaho. Non-business income allocable to Idaho is added to the income apportioned to Idaho to arrive at Idaho taxable income. CORPORATE MINIMUM 7% INCOME TAX $7.25/hr WAGE SALES & 6% USE TAX STATE UNEMPLOYMENT 1.91% INSURANCE RATE #2 BEST STATE Property tax rate (2013 Tax Foundation Study) UNION MEMBERSHIP 7.1% (NAT L AVG: 11.9%) 1.6%-7.8% PERSONAL INCOME TAX RATE RANGE Rate range on a bracketed system based on income levels IDAHO IS A right to work STATE PROPERTY EXEMPTION First $100,000 of personal property is exempt from taxation COLLIERS INTERNATIONAL P. 11
DAVID CADWELL 208 850 3733 david.cadwell@colliers.com MIKE CHRISTENSEN 208 472 2866 mike.christensen@colliers.com Colliers International Boise 755 W Front Street, Suite 300 Boise, Idaho 83702 208 345 9000 www.colliers.com/boise This document has been prepared by Colliers International for advertising and general information only. Colliers International makes no guarantees, representations or warranties of any kind, expressed or implied, regarding the information including, but not limited to, warranties of content, accuracy and reliability. Any interested party should undertake their own inquiries as to the accuracy of the information. Colliers International excludes unequivocally all inferred or implied terms, conditions and warranties arising out of this document and excludes all liability for loss and damages arising there from. This publication is the copyrighted property of Colliers International and/or its licensor(s). 2015. All rights reserved